Rental income.
This query is : Resolved
14 December 2013
We have a land in my mother's name and when she purchased the land in the year of 1982 my father had given the total contribution amount to purchase the property and get it registered in my mother's name. After that my father has developed a building on that land and it was also his contribution. The total amount he contributed has shown into his Income tax file because he is the Real owner and my mother is the Apparent owner as per my income tax lawywer's view. But as per the civil law my mother is the actual owner of that property. Later on we have given the ground floor to a Bank on rent and the other floor to other tenants. The total rental income till today is shown in my father's file and he is paying all the tax amount till today. But very recently as per the latest agreement, bank has increased the rent, as a result they will deduct TDS from the rent and they will issue the certificate in my mother's name and the income we have shown in father's file so we will not get the claim and in stead of getting the claim on TDS my father has to pay taxes extra. So we have to loss a huge amount. In one hand bank will deduct the TDS and another my father has to pay tax as he will show the rental income in his file. So, please tell us what should I do to resolve the matter so that I won't have pay double tax for a single income.
14 December 2013
Please help me.
14 December 2013
see you wont have to pay double tax anyways. if you are offering the said income in your father's tax return, you can claim refund for the TDS deducted against your mother's PAN.
14 December 2013
Sir, can you please tell me the how should I proceed?
14 December 2013
there are two options:
1. show in father's return. pay due taxes on it. File mother's nil return and claim refund
2. show it in mother's return.
i would suggest that you continue showing in father's return. if your mother's return is picked up for scrutiny, you can explain the clubbing.
1. show in father's return. pay due taxes on it. File mother's nil return and claim refund
2. show it in mother's return.
i would suggest that you continue showing in father's return. if your mother's return is picked up for scrutiny, you can explain the clubbing.
14 December 2013
I told my lawyer as per your second option but he says the department won't accept it. Please don't mind I am not aware about all this. Is there any specific provition?
14 December 2013
i would also suggest 1 option. the provisions are in section 64 (clubbing of income).
14 December 2013
Thanks a lot sir, I will discuss with him tomorrow.
14 December 2013
you are welcom Sourav.
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